For additional information on our EPS calculation methodologies, refer to pages 170 to 171 in Note 23 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions, except per share amounts)	2025		2024		2025		2024
Net income	$	861	$	730	$	2,198	$	1,904
Less:
Preferred stock dividends	(58)		(48)		(167)		(148)
Dividends and undistributed earnings allocated to participating securities(1)	(1)		—		(2)		(1)
Net income available to common shareholders	$	802	$	682	$	2,029	$	1,755
Average common shares outstanding (In thousands):
Basic average common shares	283,434		297,365		286,074		299,964
Effect of dilutive securities: equity-based awards	4,729		4,482		4,365		4,212
Diluted average common shares	288,163		301,847		290,439		304,176
Anti-dilutive securities(2)	—		3		18		728
Earnings per common share:
Basic	$	2.83	$	2.29	$	7.09	$	5.85
Diluted(3)	2.78		2.26		6.98		5.77

(1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

(2) Represents equity-based awards outstanding, but not included in the computation of diluted average common shares because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 165 to 167 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.

(3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.